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knixon
Level 1

How can I have payroll automatically deduct from Prepaid Payroll Liability account that I created on the balance sheet

I already created a Prepaid Salary line item under Other Liabilities.   How can I have what I pay specific person reduce this prepaid salary liability. 

2 Comments 2
Teri
Level 9

How can I have payroll automatically deduct from Prepaid Payroll Liability account that I created on the balance sheet

Prepaid accounts are Assets, which are the exact opposite of Liabilities.  What are you trying to do?

Teri
Level 9

How can I have payroll automatically deduct from Prepaid Payroll Liability account that I created on the balance sheet


Better explanation for non-accountant:

 

Prepaid =Already paid

 

Liability = Not paid yet (you owe)

 

So can't be both at the same time.

@Teri wrote:

Prepaid accounts are Assets, which are the exact opposite of Liabilities.  What are you trying to do?


 

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